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HR teams feel the strain as expectations rise, survey finds

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The majority of HR professionals surveyed for a 2025 HR Health Check by workplace technology firm HiBob said they are leading the biggest workplace transformation in decades, often while managing smaller teams. Most are expected to protect organisational culture even as they implement decisions that may damage it. As a result, 59 percent said they are under more emotional strain than they were a year ago.

The report reveals that HR teams are bracing for what many describe as a “do more with less” era, with significant emotional, strategic and operational burdens concentrated within small teams.

More influence, less capacity

The report shows that HR has moved closer to the centre of decision-making in recent years. More than half of senior professionals surveyed now report directly to the chief executive, and 54 percent feel more empowered to challenge or advise executive leadership. A further 88 percent believe their function is recognised as key to business success.

But this influence has come at a cost. Nearly two-thirds said HR now operates as the company’s crisis hotline, absorbing a wide range of issues across wellbeing, change management and operational risk. Sixty-one percent said that after supporting everyone else’s mental health, there is little energy left for their own.

The top emotional pressures cited were supporting staff through burnout and wellbeing concerns (42 percent), managing constant change and uncertainty (40 percent), and balancing commercial demands with employee needs (36 percent).

Workloads rising as teams shrink

The data also show that HR teams are managing more work with fewer resources. More than half expect to operate leaner teams in 2026, and 46 percent said burnout will be the biggest business risk they face.

One in 10 professionals surveyed works in a team of three or fewer, while another fifth said they work in teams of four to six. Despite their size, 90 percent of these professionals manage others, suggesting the scope of HR work has expanded without equivalent increases in headcount.

Alongside core duties, many are being tasked with driving productivity, integrating AI tools and preparing staff for future business needs. Improving productivity while supporting wellbeing was the top strategic priority for the year ahead, selected by 47 percent of respondents, followed by upskilling (40 percent) and AI adoption (38 percent).

Recognition and resilience

Laura Fink, people and culture director at HiBob, said the figures reflected both the challenges and opportunities facing HR. “It’s been a tough year for HR – expectations are higher than ever, and teams are running lean. But we’re also seeing something powerful: HR finally getting the recognition it deserves at the top table,” she said.

Fink added that leadership was increasingly relying on HR to shape organisational culture and guide decisions beyond traditional people operations. “More leaders are turning to HR not just for people operations, but for direction on culture, trust, and performance.”

The report found that more than half of HR professionals want better technology and data tools to help them succeed, alongside clearer strategic direction and more time for long-term planning. Respondents said these changes were not only about efficiency, but about enabling the function to move from crisis response to sustained leadership.

Fifty-two percent believe AI will take over administrative tasks by 2026, creating space for more people-focused work. With 42 percent expecting their HR budgets to increase, many see the next 12 months as a chance to redesign the function for greater impact.

Culture, connection and competitive advantage

As businesses emerge from a period of sustained disruption, HR leaders surveyed said the fundamentals of successful work are changing. Sixty-five percent said flexibility and wellbeing will determine who wins the talent race in 2026, while 62 percent believe culture will become their biggest competitive advantage. Another 61 percent said trust will matter more than pay regarding retention.

HiBob said the findings reflected a change in how organisations think about employee value and loyalty. With HR now responsible for both strategic outcomes and emotional support, the function is increasingly expected to shape the employee experience from recruitment to retention.

In response to the pressure faced by HR professionals, HiBob has launched a global community platform, In Good Company, to help people-first leaders connect and share experiences. The initiative is aimed at HR practitioners, managers and business leaders looking to build more human-centred workplaces.

The 2025 HR Health Check shows that while HR is more powerful than ever, the support structures around it must evolve. And that for many in the profession, influence alone is not enough.

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